However, the Information Technology Act of 2000 (IT Act) does provide a legal framework for regulating online activities, including online gambling. Under the IT Act, the Indian government has the authority to block access to websites that engage in or promote gambling activities.Some states have also enacted specific legislation to address online gambling. For instance, the Sikkim Online Gaming (Regulation) Act of 2008 allows for the licensing and regulation of online gambling operators within the state. Other states, like Telangana and Tamil Nadu, have amended their existing gambling laws to explicitly include online gambling as an illegal activity. Consequently, the legality of online gambling in India depends on both the type of game (skill vs. chance) and the specific state laws governing the activity.
- The Karnataka Police (Amendment) Act, 2021, too, bans online gaming and betting.
- It is generally argued that certain types or variations of poker are games of skill and not of chance, for the purpose of the Gaming Enactments.
- Satyanarayana & Ors, while determining whether Rummy was a game of skill or chance, the Supreme Court held that it required players to memorise cards and hold and discard them, indicating the need for considerable skill.
- The state governments have the right to authorize lotteries within the jurisdiction and also lay down the tax clauses for the same, as per the lotteries regulation act of 1998.
- The article will also delve into the distinction between games of skill and chance, as it plays a crucial role in determining the legality of gambling activities.
Online gaming rules a ‘watershed’ moment, say Indian startup founders
It makes it illegal to operate or attend gambling establishments, although it exempts some skill-based games. These insights are particularly relevant for Telangana, which banned all forms of online gaming, including games of skill, in 2017. In 2025 alone, over 3,900 betting-related violations were recorded in the state, and 25 celebrities and influencers were booked for promoting banned betting Jetx login platforms. The use of VPNs, Telegram groups, foreign-hosted servers, and proxy agents has rendered enforcement incredibly complex. Additionally, tragic incidents of suicide among young bettors burdened by debt have made headlines in recent months. State governments are authorized under this act to hold lotteries and to frame rules and regulations that should not intervene or contradict the Central Lotteries Act.
The government has banned online money gaming in India since 22nd August 2025 with the passing of the Promotion and Regulation of Online Gaming Act, 2025. Ever since, GST will not apply where there is no monetary consideration involved in online gaming. However, if a platform fee or service fee is charged, the GST Council must clarify whether a higher or lower GST applies to it. A game of skill is one where the outcome is dependent on the expertise, practice, and experience of the player and not merely on chance. Whereas games of chance are treated similarly to betting, gambling, and horse racing. By understanding and complying with the online gaming laws in India, industry stakeholders like players, operators, investors, and legislators can navigate the complexities of this dynamic sector effectively.
Laws of Online Gambling in India
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IT intermediary guidelines rules also block access to certain types of websites and content relating to gambling. Therefore the IT act 2000 regulates cyber activities or online gambling in India in a way it gives the Indian Government the power to block or instruct foreign betting games and sites. It can be concluded that there is no explicit law that makes online betting and gambling an illegal activity in India. Theoretically, it is allowed to bet on these leading casino platforms online without running the risk of getting punished for the same. The most significant obstacles that gamblers may face in India or due to the payment portals as the RBI has instructed the banks and payment gateways not to process transactions that are related to online casino sites or gambling.
Online Gambling and Betting
Third in the ranking is Australia, with $10.14 billion projected to be made in revenue in 2024. Behind the UK, Australia has the third-highest number of gamblers, with 21.1% of the population having taken part in online gambling. Revenue from online gambling is expected to grow by 10.5% in 2024, and at a rate of 5.12% until 2028. Using data sourced from Statista, Japanese Online Casino Guide analyzed the projected 2024 online gambling revenue for 61 countries. It is pertinent to note that this decision of the DistrictCourt, was challenged before Delhi High Court.